PGA PGM Level 1 Business Planning Questions and Answers

3 main types of budges? - cash flow budgets, (projects cash on hand for facility operations) operating budgets, (reflects accrual accounting) capital budgets operating may show profit or loss on a paper for a particular period, but cash flow will show whether facility's cash on hand is sufficient to cover immediate expenses Achievable: - Is the objective tied to actions and behaviors that management and staff can actively work towards, where they control the skills and the resources needed to achieve the objective? Management and staff must also be able to track progress through objective data, such as financial figures, percentages, ratios, or customer service feedback. Capital budget: - projects expenses associated with capital expenditures usually includes parking lots, golf course, computer systems, or new teaching technology money comes from places like member assessments, municipal budges, bank financing capital project then gets expensed in operating budget through depreciation over a specified perod of time Capital expenditure: - purchase of a fixed asset or an upgrade to an existing fixed asset with a useful life that extends past one year Cash Flow Budget: - -may be single most important aspect of business -helps to maintain liquidity & enable facility to pay salaries, rent, & other bills when due -projects how much money facility ail leave in bank at end of every month or week - actual dollars